Archive for January, 2009
Price Per Square Foot….Not Always What It Seems
January 8th, 2009 | categories: Coconut Grove Real Estate, What Is Selling In Coconut Grove Real Estate?
A few weeks ago I represented the buyers in the sale of this property at 3020 Seminole Street for $1,085,000. The home went for $542.00 per square foot. At first glance, $542.00 a foot seems like an outrageously high number considering the fact that the house is an older cottage that needs a little bit of updating. Add in the fact that the highest price per square foot for a non-waterfront home in Coconut Grove in 2008 was $578.00 (this was a new construction home with no detail left undone and the finest of appliances, millwork and flooring) – and you are certainly confused.
This is exactly why you cannot strictly look at the price per square foot of home sales. The sale on Seminole is a very unique sale because even though there is a 2,000 square foot cottage on the property, the true value here is in the land (a gorgeous, oak-filled, half acre lot on a prime street).
My buyers plan to update the home and not tear it down. Therefore, we can “sort of” say that the home sold at $542.00 per square feet of living area but it was technically sold at land value. It all gets very confusing. What makes Coconut Grove very unique, is that we have so many different types of properties within a small area that you cannot compare apples to oranges. If you were going strictly by “price per square foot”, one might assume that all 2,000 square foot (old) cottages in the North Grove could command $542.00 a foot and that is certainly not the case.
Perfectly Kept Gardens….
January 7th, 2009 | categories: Coconut Grove Gated Communities
About 11 years ago I owned my own landscaping company called Grove Tropical Landscaping. I have always been a lover of plants, and spend hours every weekend planting, replanting, pruning and caring for my own yard and garden.
Here in Coconut Grove there are many homes and gated communities that are adorned with lush, tropical, beautiful landscaping. I snapped these photos yesterday of the entryways to Longview and Treasure Trove along South Bayshore Drive in South Coconut Grove. They are always maintained so perfectly, never a fallen palm frawn or an overgrown plant. The double rows of Royal Palms make these driveways especially grand.
To see what’s happening in the real estate market of Treasure Trove and Longview, (along with other Coconut Grove gated communities) click here: Coconut Grove Gated Communities – Market Update
Coconut Grove Foreclosures: One Has Sold | Another For Sale
January 6th, 2009 | categories: Coconut Grove Real Estate
One of the foreclosures I wrote about yesterday went off the market today. 3699 Loquat Avenue listed at $320,000 has an official contract. Only cash offers were accepted. In my experience, once a foreclosure goes under contract it has about a 75% chance of closing, especially when there is no financing involved.
Just as the Loquat foreclosure came off the market, a new foreclosure popped up at 4036 Malaga Avenue in South Grove priced at $619,900. Malaga Avenue is an excellent street and is filled with many high end properties. I went to look at the home today, it is a very large house on a smallish lot. The house needs about $300,000 worth of repairs but at $191.00 Per Square Foot it is an excellent buy. Even if you add in the cost of renovations, you are getting the house for $285.00 per square foot, which is well below market value. (on average, non-distressed homes in South Coconut Grove are getting roughly $358.00 Per Square Foot). See the pictures below:
Other details on 4036 Malaga Avenue, Coconut Grove, FL 33133:
- 5 Bedroom, 5 Bath
- 3,234 Square Feet Living Area
- 6,150 Square Foot Lot
- Pool
- Tile/Wood Floors
In my opinion, the fact that Coconut Grove’s foreclosures get snapped up so quickly indicates that we have a healthy market here. People recognize the value that our homes have and don’t want to miss out on a good opportunity to buy. In other areas, foreclosure properties are sitting on the market for months and months before selling.
You may also be interested in:
Coconut Grove Real Estate: Year In Review
For Sale: Two Foreclosures on Loquat Avenue
January 5th, 2009 | categories: New Listings in the Grove
There were two foreclosures on Loquat Avenue that came on the market at the end of the year.
The first foreclosure is located at 3907 Loquat Avenue and features 1,366 square feet of living area, 7,150 square foot lot, 2 bedrooms, 1 bath and priced at $399,900 ($292.00 Per Square Foot). This property closed for $785,000 back in July of 2006. Personally, I like the location of this house. It is on a good part of Loquat and there are some nice houses nearby. The listing agent for the house only put up a picture of the exterior gate, so I stretched my camera over the top and snagged the photo below.
The second foreclosure is located at 3699 Loquat Avenue and features 2,052 square feet of living area, 3,932 square foot lot, 3 bedrooms, 3 baths and is priced at $320,000 ($155.00 Per Square Foot). The property was for sale back in October of 2008 for $483,900 and was later taken off the market. The house sits on the corner of Douglas Road (32nd Avenue) and Loquat which is one of the reasons why it is priced so low.
As is the case with most foreclosures there is evidence of mold on 3699 Loquat and both properties need extensive repairs. Nevertheless, if you are up for the time and energy that is invovled with such a project, you will be rewarded by a significant gain when the market turns around.
I have worked on several foreclosure deals for my clients and am very familiar with the process. If you are interested in either one of these homes I would like the opportunity to assist you in your purchase. Please give me a call at (305) 342-1623, or send me an email here.
Coconut Grove Real Estate: Year In Review
January 3rd, 2009 | categories: Coconut Grove Real Estate, Coconut Grove Real Estate Market Conditions
Here are the official 2008 Coconut Grove real estate market numbers. Sorry for the delay, but I like to give agents a couple of days after the end of the month to enter in any final closed sales.
Note, these figures are coming only from sales within the borders of Coconut Grove - East of LeJeune Road, North of Ridgewood Road and South of 32nd Avenue.
In 2008, there were 108 single family homes sold in Coconut Grove. This is approximately 30 homes less than were sold in 2007.
- 65 of the homes sold in 2008 were under $1,000,000 and 43 were over $1,000,000.
- 40 homes were sold in the first half of 2008, and 68 homes were sold in the second half of 2008. Interesting since the financial meltdown began in September. No one will ever know the true impact, but it was surprising to see that we saw more sales in the latter half of the year.
Between the end of 2007 and 2008, home prices in Coconut Grove fell approximately 4% (sales in November and December really helped drop this number – a couple of months ago we were hovering around 14%). This number is far below other areas in Miami. Coral Gables saw sales prices drop 21% between 2007 and 2008. And Pinecrest saw sales prices drop 23% over the same period.
You could look at that one of two ways. Either you should buy in Coconut Grove because our homes are holding their value, or you shouldn’t buy in Coconut Grove because there are other areas that have dropped more in value.
There were 14 single-family home foreclosure sales in Coconut Grove. With 108 homes sold, foreclosures made up 13% of our market here in the Grove.
2008 SINGLE FAMILY HOMES IN COCONUT GROVE
- Average Listing Price: $1,136,383
- Average Sale Price: $1,012,250
- Average Sale Price Per Square Foot: $314
- Average Sale Price/List Price: 90%
At the year end, there were 237 single family homes in Coconut Grove on the market.
So what are my predictions for 2009? Based on the increase of sales we saw toward the second half of 2008, I believe that we will see many more transactions in 2009 than we saw in 2008. What types of homes will sell? Top quality homes in all price ranges. Aside from foreclosures, buyers these days are not willing to spend the time and money to make major renovations. Finally, I expect home values to remain the same or fall slightly over the next year.
Note: The above calculations do not include the 2008 sale of ”Las Brisas” at 3551 Main Highway for $11,500,000. This was the highest sale price ever recorded for a single family home in Coconut Grove. The sale distorts and misrepresents the final figures. For example, if you include the sale then the calculations show that Coconut Grove saw a 4% increase (as opposed to a 4% decrease) in sales prices between 2007 and 2008.
The above numbers come from the South Florida Multiple Listing Service, and are deemed reliable, but not guaranteed.
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Coconut Grove Real Estate | Something For Everyone
January 2nd, 2009 | categories: Coconut Grove Real Estate, What Is Selling In Coconut Grove Real Estate?
Coconut Grove offers one of the most diverse real estate markets that I know of. Take a look at the below 2008 numbers for Coconut Grove. From an $11,500,000 waterfront villa, to a quaint $250,000 4 bedroom cottage…we truly have it all.
Highest Priced Sale $11,500,000: 3551 Main Highway | 11,094 Sq. Ft. Living Area | 4 Bedroom, 6 Bath | $1,036.00 Per Square Foot
Highest Priced Sale Not Waterfront $4,250,000: | 3410 Poinciana Avenue | 9,941 Sq. Ft. Living Area | 7 Bedrooms, 7 Baths | $427.00 Per Square Foot
Highest Price Per Sq. Ft. $1,036.00: 3551 Main Highway (above) was highest | 1920 South Bayshore Lane (second in line) at $770.00 Per Square Foot | Sale Price: $5,500,000 | 7,137 Square Feet Living Space | 5 Bedrooms, 7 Baths
Highest Price Per Sq. Ft. Not Waterfront $573.00: 4184 Ingraham Road | Sale Price: $2,350,000 | 4,095 Sq. Ft. Living Area | 5 Bedrooms, 4 Baths
Lowest Priced Sale $250,000: 3970 Kumquat Avenue | 1,832 Sq. Ft. Living Area | 4 Bedrooms, 2 Bath | $136.00 Per Square Foot This was a foreclosure sale, sold in 1 day.
Lowest Price Per Square Foot $106.00: 3816 Main Highway | Sale Price: $500,000 | 4,697 Square Feet | $106.00 Per Square Foot | 3 Bedrooms, 2 Baths This was not a short sale or a foreclosure
**The above numbers do not include sales in the West Grove.
Winners and Losers of Real Estate in 2008
January 1st, 2009 | categories: Coconut Grove Real Estate
Real Estate in 2008 was a year for the record books. MSN released their Top Winners and Losers in Real Estate for 2008. Chances are, you have made it somewhere on this list.
Winners:
- Agents and asset managers of bank-owned properties.
- Attorneys
- First Time home buyers
- Smaller banks that bet against risky lending
- Lending’s loss-mitigation workers
Losers:
- People who lost their homes, and the banks that made them the loans
- Home Builders
- Sellers
- Real Estate Agents
- Mortgage Brokers
- US Taxpayers
It will be interesting to see where the market takes us next year. Everyone has their predictions, and I will make mine here on The Coconut once the final 2008 numbers are tallied. Stay tuned…